As South Africa grapples with increasing energy costs amid evolving supply chain dynamics, procurement leaders must rethink strategies to ensure resilience and operational stability, including investing in renewable energy systems.
Despite a notable reduction in loadshedding, South Africans are grappling with escalating energy costs that are placing additional strain on businesses already facing high operating expenses. In March 2026, the National Energy Regulator of South Africa (NERSA) approved substantial electricity tariff increases: 8.76% for Eskom direct customers and 9.01% for municipal customers for the 2026/27 financial year. This trend is forcing procurement and supply chain leaders to navigate a new landscape of energy challenges that goes beyond merely coping with power outages.
Paul Vos, Regional Managing Director of the Chartered Institute of Procurement & Supply (CIPS) Southern Africa, says the era of energy uncertainty has morphed rather than vanished. "Today, organisations are increasingly dealing with infrastructure failures, maintenance backlogs and localised network disruptions, particularly at municipal level, that are often less predictable than loadshedding itself. From a supply chain perspective, unpredictability creates significant operational risk," he says.
